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OTHERS SECOND EXTENSION TO THE LONG-TERM CHARTER CONTRACT ENTERED INTO BETWEEN ZELL TRANSPORTATION SDN. BHD. ("ZT") AND ICON BAHTERA (B) SDN. BHD. ("IBSB"), A SUBSIDIARY COMPANY OF ICON FLEET SDN. BHD., WHICH IN TURN IS A WHOLLY OWNED SUBSIDIARY OF ICON OFFSHORE BERHAD

ICON OFFSHORE BERHAD

Type Announcement
Subject OTHERS
Description
SECOND EXTENSION TO THE LONG-TERM CHARTER CONTRACT ENTERED INTO BETWEEN ZELL TRANSPORTATION SDN. BHD. ("ZT") AND ICON BAHTERA (B) SDN. BHD. ("IBSB"), A SUBSIDIARY COMPANY OF ICON FLEET SDN. BHD., WHICH IN TURN IS A WHOLLY OWNED SUBSIDIARY OF ICON OFFSHORE BERHAD

1.  INTRODUCTION

The Board of Directors (“Board”) of Icon Offshore Berhad (“ICON”) or the “Company” is pleased to announce that IBSB has received another extension on the charter of its vessel Icon Kayra (“Vessel”) from ZT (“the Second Extension Contract”).

 

2.  BACKGROUND/DETAILS OF SECOND EXTENSION CONTRACT

The Second Extension Contract is for the charter of the Vessel by ZT for a primary Contract duration of 17.5 months with a further yearly extension option of 4 years which shall be effective from 15th May 2021. This is a variation to the initial contract that was announced on 9 March 2017 (Reference No. : GA1-03032017-00021), followed by the first extension contract that was announced on 26 November 2019 (Reference No. : GA1-25112019-00048).

 

3.  FINANCIAL EFFECTS ON ICON

The Second Extension Contract is valued at approximately RM167,964,465.00 and is expected to contribute positively to the earnings, order book and net assets of ICON for the financial year ending 31 December 2021 and beyond. The Award is not expected to have any material effect on the share capital and shareholding structure of ICON.

 

4.  RISKS ASSOCIATED WITH THE SECOND EXTENSION CONTRACT

The risks associated with the Second Extension Contract are mainly operational risks such as accidents and unexpected breakdown of the Vessel. In mitigating such risks, ICON carries out routine drydocking inspections, afloat repairs, and regular maintenance based on the Company’s comprehensive planned maintenance program. Together with ICON’s strict health, safety, security and environment (HSSE) policy and procedures, ICON is of the view that the likelihood and impact of these risks are manageable within an acceptable level.

 

5.  DIRECTORS' AND SHAREHOLDERS' INTEREST

None of the Directors, major shareholders of ICON, and/or persons connected with the Directors or its major shareholders has any interest, direct or indirect in the Second Extension Contract.

 

6.  DIRECTORS' STATEMENT

Our Board believes that the award and/or the acceptance of the Second Extension Contract is in the best interest of IBSB and ICON.






Announcement Info

Company Name ICON OFFSHORE BERHAD
Stock Name ICON
Date Announced 27 May 2021
Category General Announcement for PLC
Reference Number GA1-27052021-00044




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